The Dubai Lands Department has published the results of real estate sales in Dubai for October 2022. In spite of the fact that the number of transactions remained almost unchanged at the end of the month, the overall value of properties for sale off plan in Dubai rose dramatically. The average price per square metre also increased. Flats in Dubai the UAE are in high demand among local residents and foreign nationals. According to statistics, in October 2022, 4,918 real estate transactions were concluded during the construction phase. 4,917 transactions were completed in September. However, this year’s volume of transactions has more than doubled when compared to October 2021.
The results of the market in October: off-plan projects in Dubai set new records
The overall cost of off-plan transactions for the purchase of residential real estate has tripled compared to October 2021. In October 2022, the amount peaked at a record $3.4 billion, the highest figure for the past year. Compared to September 2022, the total transaction value grew by more than 8%.
Over the course of the year, the average cost per square metre rose sharply, reaching $5,630. The average price per square metre for a new building in October 2021 was $4,763, which was 18% less expensive than in October 2022.
Benefits of investment in property in Dubai
It has long been known that Dubai is well-known for its exceptional skyscrapers and neighbourhoods, unique and elite housing properties, low crime rates, well-developed infrastructure, and much more, making it a desirable place for both tourists and people wishing to work and reside here. Moreover, Dubai’s political climate is quite secure, ensuring that geopolitical turbulence and instability won’t have an impact on overseas investment. Apartments for sale in Dubai also offer the following additional advantages:
l Dynamic, expanding market with different liquid units in various price categories. Foreigners have the right to acquire full property ownership. Loans and installments from real estate developers are also available.
l Stable rental flow in foreign currency: over the past year, Dubai’s average annual return on housing has improved from 5-6% to 8-10%.
l No taxes are paid whether purchasing, maintaining, or even renting out your residence. Commercial real estate is an exception, where a 5% tax is applied to revenue over $100,000 equivalent annually.
l The option to create a legal entity and open a bank account in the UAE is available, and the local financial system is considered one of the world’s most reliable systems.
l Possibility of obtaining a visa for the housing purchase and investments. Foreigners are eligible for a UAE residence visa. One of the reasons is real estate investment: you can apply for a three-year visa when you purchase a residence for 750 thousand AED (204 thousand USD). You can obtain a ten-year residence permit if the cost of the residence exceeds 2 million AED (544 thousand USD).
The formalities of investing in real estate in Dubai are quite simple, but at the same time, they may differ from those with which the investor is already familiar. It’s a good idea to hire a reputable real estate agent and possibly a lawyer to help you navigate the process. They should help, for example, in drawing up the terms of the contract for the buyer and seller, signing the Memorandum of Understanding, paying remuneration and state duties, as well as transferring documents for ownership.
The best areas to acquire flats in Dubai at affordable prices
l Mohammed Bin Rashid (MBR City), “a city within a city” is an under-construction project under the patronage of H.H Sheikh Mohammed. It is situated just ten minutes away from the Burj Khalifa. There has already been a launch of the so-called Crystal Lagoon, an artificial reservoir with beaches. Infrastructure is currently under development: residential facilities, hotels, sports complexes, and shopping malls. Apartments in this area near the ocean start around 150 thousand USD. Although this is an artificial lagoon, the water is blue and the sand is golden, just as on a typical beach. The selection of projects is outstanding: there are almost completed complexes, developers provide installments on attractive terms, new construction projects are launched regularly.
l Al Furjan is a new neighbourhood in Dubai’s south, very close to the spectacular Jumeirah Village project. The area is dominated by low-rise buildings. There are a lot of parks, as well as schools, kindergartens, and recreational facilities, everything that families with children may like. It takes 20 minutes to drive to the coast. Al Furjan is even better designed than the famous Jumeirah Village, which frequently experiences traffic problems. There are also excellent public transportation links, a number of metro stops, and a brand-new airport close by. This is a good choice when it comes to inexpensive locations. Additionally, a lot of local developers offer flats in Dubai not just finished, but also furnished right away for the same price. Just come and live.
l Dubai South is one of the biggest urban development projects, located near Al Maktoum Airport and the Expo 2020 pavilions. The territory is currently under active development. It is designed for living of one million people. For investors, the current environment in Dubai South is highly intriguing. Prior to Expo 2020, property developers constructed apartment complexes that were furnished and rented out. The rental agreement will simply be renegotiated for the new owner, and you will start receiving revenue right away, as these units are currently being sold with tenants. You shouldn’t be concerned that the property would sit vacant without occupants.
Help with selecting property for sale in Dubai
Purchasing property abroad often brings up a number of concerns: are there risks, are apartments or villas for sale in Dubai worth the investment, and what is their level of profitability? On the official website of Emirates.Estate, you can discover all the answers to your questions and receive professional assistance from real estate experts who can help you not only choose the right option but also provide legal support for the transaction.